Skip to content
Mobile Home Park Investing

User Stats

22
Posts
1
Votes
Stuart Edwards
  • Investor
  • Lubbock, TX
1
Votes |
22
Posts

I have a 9 acres in city limits in Texas and I want to build a mobile home park

Stuart Edwards
  • Investor
  • Lubbock, TX
Posted Jan 29 2024, 07:39

I have a owner of 9 acres in city limit in the north west/central Texas who wants to sell the property. What type of contract do I use because I was recommend by my lender that this will be a commercial deal that will take longer then a normal house contract. I want to build a mobile home park and a steel building  for a park office and some other amenities but I don't know what is needed or how costly it will be.
I do know the cities codes and the zoning needs for a mobile home park. Currently the property is zoned wrong because of this I have reached out to the zoning department to work on that. I really need to know the numbers on the building costs so I don't get robed by the contractors or some contractors contact info that work well and keep it with in budget.

User Stats

712
Posts
581
Votes
Logan M.
Pro Member
  • Investor
  • Provo, UT
581
Votes |
712
Posts
Logan M.
Pro Member
  • Investor
  • Provo, UT
Replied Jan 29 2024, 07:49

Hey Stuart, thanks for reaching out.

Zone changes can be a lot of work but if the city is supported I would pursue it to see what you can get done.

Have you run a feasibility study?

I would write up a contract that is probably 3-6 months long with lots of potential exertions built into it. This is not a flip deal this is a development deal.

Until you have plans drawn up I am not sure if you will be able to get accurate bids.

What is the utility situation?

User Stats

22
Posts
1
Votes
Stuart Edwards
  • Investor
  • Lubbock, TX
1
Votes |
22
Posts
Stuart Edwards
  • Investor
  • Lubbock, TX
Replied Jan 29 2024, 07:53

It has one house on it with utilities on the back end of the property the rest is flat land but its in the city limits so I could get utilities easily put in.

How do you run a Feasibility Study?

Could you send me an example of a feasibility study and of a contract with those exertions/extensions

BiggerPockets logo
Find, Vet and Invest in Syndications
|
BiggerPockets
PassivePockets will help you find sponsors, evaluate deals, and learn how to invest with confidence.

User Stats

712
Posts
581
Votes
Logan M.
Pro Member
  • Investor
  • Provo, UT
581
Votes |
712
Posts
Logan M.
Pro Member
  • Investor
  • Provo, UT
Replied Jan 29 2024, 08:06
Quote from @Stuart Edwards:

It has one house on it with utilities on the back end of the property the rest is flat land but its in the city limits so I could get utilities easily put in.

How do you run a Feasibility Study?

Could you send me an example of a feasibility study and of a contract with those exertions/extensions


 I will DM you

User Stats

22
Posts
1
Votes
Stuart Edwards
  • Investor
  • Lubbock, TX
1
Votes |
22
Posts
Stuart Edwards
  • Investor
  • Lubbock, TX
Replied Jan 29 2024, 08:07

Thank you so much

User Stats

9,861
Posts
5,510
Votes
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
5,510
Votes |
9,861
Posts
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Jan 29 2024, 08:38

You are going to want to have many conversations with the city zoning and planning departments. They should be able to tell you exactly what the restrictions are with the property. In terms of the contract, I would get a investor friend or realtor to help you.

User Stats

1,173
Posts
650
Votes
Jay Thomas
Pro Member
  • Real Estate Agent
650
Votes |
1,173
Posts
Jay Thomas
Pro Member
  • Real Estate Agent
Replied Jan 29 2024, 09:04

Taking on that 9-acre parcel dream for a mobile home park and steel office is a big task! To handle it, use a special land development purchase agreement for the deal and be ready for a potentially longer closing process due to zoning complexities. Planning building costs involves considering infrastructure, amenities, and getting quotes from trusted steel building contractors. When dealing with rezoning, be patient, and watch out for potential impact fees by consulting a zoning attorney. For contractors, ask for recommendations, get several quotes, and create a realistic budget with extra funds for unexpected expenses. Keep in mind, unexpected issues may arise, so stay prepared to adjust and adapt as needed.

User Stats

22
Posts
1
Votes
Stuart Edwards
  • Investor
  • Lubbock, TX
1
Votes |
22
Posts
Stuart Edwards
  • Investor
  • Lubbock, TX
Replied Jan 29 2024, 09:13
Quote from @Eliott Elias:

You are going to want to have many conversations with the city zoning and planning departments. They should be able to tell you exactly what the restrictions are with the property. In terms of the contract, I would get a investor friend or realtor to help you.


 Have the conversations during the contract stage or after purchase?

User Stats

40,109
Posts
59,251
Votes
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
59,251
Votes |
40,109
Posts
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Jan 29 2024, 18:30
Quote from @Logan M.:

Hey Stuart, thanks for reaching out.

Zone changes can be a lot of work but if the city is supported I would pursue it to see what you can get done.

Have you run a feasibility study?

I would write up a contract that is probably 3-6 months long with lots of potential exertions built into it. This is not a flip deal this is a development deal.

Until you have plans drawn up I am not sure if you will be able to get accurate bids.

What is the utility situation?


Stuart  Please take no offense to my post here.. However based on your questions I highly recommend bringing in a partner that has experience at this en devour.. developing  a park takes a special set of skills.. Just having a contract is super simple advice I mean we all know you need to start with a contract.. But you need so much more than that.  From what I have read on BP Logan who answered you is an experienced operator looking to expand.. I don't know this first hand but I believe his post to be accurate..

Many municipalities stopped providing zoning and permits to build parks years ago thats why existing parks are in such high demand little competition from new parks being built. so thats the first thing you do is go talk to the city planning department you can walk in and grab a planner at the counter to start asking your questions.. If the answer is we no longer entitle new parks well then you stop there and don't waste anymore time or money.. If they give you positive feedback then be prepared to spend some significant cash getting your applications ready. Each city will be different you might pull it off for as little as 20k could be as high as a few hundred grand.

next is financing this is where Logan comes in on top of his expertise.. If you have no experience developing or owning parks you stand Zero chance of getting a loan Unless you have significant cash reserves and by that I mean high 6 to low 7 figures in cash.

The reason its so tough is called Absorption. You have to put all this cash out and then wait to fill the spaces they don't fill over night and so you severely negative cash flow for the lease up which can take years depending on the amount of spaces.. I have owned 3 parks in my day.. So have some experience at it.  However when i look at parks to build and I have looked just could not make sense of them compared to buying existing.. So my recommendation is to get with Logan if he is willing and talk this all through and maybe its something he would be interested in adding to his growing portfolio of parks. 

User Stats

22
Posts
1
Votes
Stuart Edwards
  • Investor
  • Lubbock, TX
1
Votes |
22
Posts
Stuart Edwards
  • Investor
  • Lubbock, TX
Replied Jan 30 2024, 08:01
Quote from @Jay Hinrichs:
Quote from @Logan M.:

Hey Stuart, thanks for reaching out.

Zone changes can be a lot of work but if the city is supported I would pursue it to see what you can get done.

Have you run a feasibility study?

I would write up a contract that is probably 3-6 months long with lots of potential exertions built into it. This is not a flip deal this is a development deal.

Until you have plans drawn up I am not sure if you will be able to get accurate bids.

What is the utility situation?


Stuart  Please take no offense to my post here.. However based on your questions I highly recommend bringing in a partner that has experience at this en devour.. developing  a park takes a special set of skills.. Just having a contract is super simple advice I mean we all know you need to start with a contract.. But you need so much more than that.  From what I have read on BP Logan who answered you is an experienced operator looking to expand.. I don't know this first hand but I believe his post to be accurate..

Many municipalities stopped providing zoning and permits to build parks years ago thats why existing parks are in such high demand little competition from new parks being built. so thats the first thing you do is go talk to the city planning department you can walk in and grab a planner at the counter to start asking your questions.. If the answer is we no longer entitle new parks well then you stop there and don't waste anymore time or money.. If they give you positive feedback then be prepared to spend some significant cash getting your applications ready. Each city will be different you might pull it off for as little as 20k could be as high as a few hundred grand.

next is financing this is where Logan comes in on top of his expertise.. If you have no experience developing or owning parks you stand Zero chance of getting a loan Unless you have significant cash reserves and by that I mean high 6 to low 7 figures in cash.

The reason its so tough is called Absorption. You have to put all this cash out and then wait to fill the spaces they don't fill over night and so you severely negative cash flow for the lease up which can take years depending on the amount of spaces.. I have owned 3 parks in my day.. So have some experience at it.  However when i look at parks to build and I have looked just could not make sense of them compared to buying existing.. So my recommendation is to get with Logan if he is willing and talk this all through and maybe its something he would be interested in adding to his growing portfolio of parks. 


 Jay I greatly appreciate the advice but how would I go about this? Because Partnerships I've never done before shouldn't the partners know each other? Don't take this the wrong I do want to do partnerships but that's new territory for me.

User Stats

52
Posts
29
Votes
Replied Jan 30 2024, 08:09

Hey Stuart,

As someone whos worked in the MH industry for over 6 years, I can tell you it takes a lot of time and money to develop even a small parcel into a park. I currently work for a MH resort and the owner has 19 parks across the nation and always looking to expand. Hes got well over 8 figures, investors, contractors, engineers, an entire team, and still it takes years to hit the finish line. Making multiple trips to the city/county for approvals, to hearings, and countless other things I am not aware of. I dont want to discourage in your venture, but please be very careful and get more knowledge/mentors/investors/partners etc.

Good luck!

User Stats

40,109
Posts
59,251
Votes
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
59,251
Votes |
40,109
Posts
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Jan 30 2024, 08:12
Quote from @Stuart Edwards:
Quote from @Jay Hinrichs:
Quote from @Logan M.:

Hey Stuart, thanks for reaching out.

Zone changes can be a lot of work but if the city is supported I would pursue it to see what you can get done.

Have you run a feasibility study?

I would write up a contract that is probably 3-6 months long with lots of potential exertions built into it. This is not a flip deal this is a development deal.

Until you have plans drawn up I am not sure if you will be able to get accurate bids.

What is the utility situation?


Stuart  Please take no offense to my post here.. However based on your questions I highly recommend bringing in a partner that has experience at this en devour.. developing  a park takes a special set of skills.. Just having a contract is super simple advice I mean we all know you need to start with a contract.. But you need so much more than that.  From what I have read on BP Logan who answered you is an experienced operator looking to expand.. I don't know this first hand but I believe his post to be accurate..

Many municipalities stopped providing zoning and permits to build parks years ago thats why existing parks are in such high demand little competition from new parks being built. so thats the first thing you do is go talk to the city planning department you can walk in and grab a planner at the counter to start asking your questions.. If the answer is we no longer entitle new parks well then you stop there and don't waste anymore time or money.. If they give you positive feedback then be prepared to spend some significant cash getting your applications ready. Each city will be different you might pull it off for as little as 20k could be as high as a few hundred grand.

next is financing this is where Logan comes in on top of his expertise.. If you have no experience developing or owning parks you stand Zero chance of getting a loan Unless you have significant cash reserves and by that I mean high 6 to low 7 figures in cash.

The reason its so tough is called Absorption. You have to put all this cash out and then wait to fill the spaces they don't fill over night and so you severely negative cash flow for the lease up which can take years depending on the amount of spaces.. I have owned 3 parks in my day.. So have some experience at it.  However when i look at parks to build and I have looked just could not make sense of them compared to buying existing.. So my recommendation is to get with Logan if he is willing and talk this all through and maybe its something he would be interested in adding to his growing portfolio of parks. 


 Jay I greatly appreciate the advice but how would I go about this? Because Partnerships I've never done before shouldn't the partners know each other? Don't take this the wrong I do want to do partnerships but that's new territory for me.


U don't need partners if you have cash.. just be realistic on how much cash you need to pull this off I have no clue as to your financial position or experience level. Again no offense but based on your questions it sounds like you have very little experience.. And with this kind of project Experience is as important as having the cash to pull it off.. but if you have the money to pay cash for the land and for all the entitlements and cash to put in the underground.  then sure go for it. Talk to planning first. if you get good results.. go hire a good civil engineer that also has a land planner on staff and off you go.

User Stats

40,109
Posts
59,251
Votes
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
59,251
Votes |
40,109
Posts
Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Jan 30 2024, 08:13
Quote from @Armando Carrera:

Hey Stuart,

As someone whos worked in the MH industry for over 6 years, I can tell you it takes a lot of time and money to develop even a small parcel into a park. I currently work for a MH resort and the owner has 19 parks across the nation and always looking to expand. Hes got well over 8 figures, investors, contractors, engineers, an entire team, and still it takes years to hit the finish line. Making multiple trips to the city/county for approvals, to hearings, and countless other things I am not aware of. I dont want to discourage in your venture, but please be very careful and get more knowledge/mentors/investors/partners etc.

Good luck!


EXACLTY !!!
BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

87
Posts
51
Votes
Replied Jan 30 2024, 08:32

I could echo everyone else's comments but this is a really tricky situation. To pull this off you would need years of expertise, deep pockets and time. And when I say time... I mean years of having your money tied up before you ever see any ROI. If you were my son I would telling 'don't do it! Go buy a existing park and build your empire from there.

User Stats

9
Posts
8
Votes
Mike H.
8
Votes |
9
Posts
Replied Feb 6 2024, 13:39

As long as you are frugal and complete your due diligence and a good portion of the leg work (as it seems you are doing), the overall costs of the development wouldn't be outrageous in comparison to a comparable existing park.  By that I am inferring to the modern amenities and build out of the infrastructure.  The maintenance on an old park would rack up costs quickly as well if its antiquated and has not been maintained properly.